Currency rule OK'd
The PWBA issued a ruling that retroactively allows pension plans to trade in foreign currencies with parties of interest to the plan, including banks, broker/dealers and their affiliates.
Attorney A. Richard Susko said the exemption will be useful for in-house pension managers in getting best execution for currency transactions.
GM in Houston property deal
The $50 billion General Motors pension fund and Hines Interests are negotiating to acquire a package of four office buildings and two strip retail centers in a Houston commercial park from a development subsidiary of the $3.2 billion Exxon Annuity Trust. Terms were not disclosed, but the deal is estimated to be worth about $100 million.
San Bernardino taps RREEF
The $1.3 billion San Bernardino County Employees' Retirement Association hired RREEF as real estate manager, said Kevin Lynch, principal in The Townsend Group, which assisted in the search. The firm will manage a $65 million portfolio, replacing Mellon/McMahan Real Estate Advisers, which resigned in December.
Seattle hires Wurts Johnson
The new assignment includes full performance measurement.
Equity firms added
The $15 million pension fund of Edwards Brothers Inc. hired Mississippi Valley Advisors and the PIMCO family of mutual funds, said Douglas J. Weber, treasurer. The equity firms will get about $5 million each.
Two bond managers were terminated: JMC Capital and Harris Bretall Sullivan & Smith.
Brack Stanford & Associates assisted.
Equitable announces shifts
A new management team is taking over at Equitable Life Assurance, and Richard Jenrette is stepping down as chairman. He will continue as chairman and CEO of The Equitable Cos. Joseph J. Melone, now president and CEO, will become chairman of Equitable Life, and James M. Benson, senior executive vice president, will become president and chief operating officer.
Stone & Webster hit
Shareholder activist Robert A.G. Monks, who heads LENS Inc., wants institutional shareholders to mount a revolt against the management of Stone & Webster, the engineering, construction and consulting firm.
In a letter, he said shareholders could reap large gains by pushing for independent directors, a separate nominating committee and confidential voting.
N.M. may boost equities
The New Mexico State House of Representatives approved and sent to the state Senate a measure allowing the $4 billion New Mexico State Permanent Fund and the $2 billion New Mexico Severance Tax Permanent Fund to increase equity exposure.
The bill would authorize an increase in equity holdings up to 50% of assets. Both funds are managed internally and have less then 30% in equities.
4 firms form consortium
Four major money managers have formed a consortium to manage U.K. public pension funds: Legal & General Investment Management will run U.K. equities; Oppenheimer Capital, North American equities; Daiwa International, Far Eastern equities and global fixed-income; and Lombard Odier Investment, continental European equities.
Hudson-Wilson leaving AEW
Susan Hudson-Wilson, director of portfolio strategies services at Aldrich, Eastman & Waltch, is leaving to start her own research and consulting company. She will continue to perform the same tasks for AEW clients on a subcontracting basis.
Plan hires consultant
Standard Motor Products hired KPMG Peat Marwick to conduct a major study of the company's $67 million profit-sharing plan.